New Fed Chair Warsh Sworn In as Bitcoin Hovers Near $77K

Kevin Warsh took the oath as the 17th Federal Reserve chair on May 22, 2026, in a White House ceremony led by Supreme Court Justice Clarence Thomas. He succeeds Jerome Powell, who led the Fed through the pandemic, inflation crisis, and rate‑hiking cycle. The Senate confirmed Warsh on May 13 by a 54-45 party‑line vote after Donald Trump nominated him in January.

Warsh inherits rising inflation driven by the ongoing Iran war, escalating tariffs, and surging gasoline prices that have pushed consumer sentiment to record lows. His financial disclosures revealed significant investments in blockchain and digital assets, covering decentralized finance, Bitcoin infrastructure, and various blockchain protocols. Warsh has pledged to divest all holdings. Bitcoin (BTC) traded near $77,000 on the day of his swearing‑in, reflecting market caution over what his leadership means for monetary policy and risk assets.

Inflation from the Iran War and Tariffs Lands on the New Chair’s Desk

The economic backdrop Warsh inherits is not a typical transition. Inflation is accelerating from a confluence of external shocks: the military conflict with Iran, tariff escalation, and energy prices. Consumer sentiment has hit record lows. Warsh, who served as a Fed governor from 2006 to 2011 during the financial crisis, pledged during his confirmation to lead a “reform‑oriented” Fed emphasizing independence and transparency. He also expressed frustration with what he called static economic models at the institution.

The question for markets is whether Warsh will prioritize rate hikes to curb inflation or tolerate higher inflation to avoid slowing the economy during geopolitical uncertainty. His previous tenure suggests a willingness to act aggressively, yet his reform agenda introduces uncertainty about the Fed’s communication and reaction function. The first Federal Open Market Committee (FOMC) statement under his chair will reveal the near‑term tilt.

Warsh’s Digital Asset Holdings and the Divestment Monitor

Warsh’s financial disclosures put his digital asset exposure on the record. The holdings spanned DeFi projects, Bitcoin mining and infrastructure, and multiple blockchain protocols. For a Fed chair, direct exposure to the asset class is unusual and has drawn scrutiny from both sides of the aisle.